PAC32-R-255 B 19/01/2017
INFORMATION SOUGHT BY THE PUBLIC ACCOUNTS COMMITTEE
(as sought in PAC Letter of 10 January 2017)
1. Please provide a table detailing communication of (a) the initial reserve price and
(b) the revised reserve price including to whom, time and date of communication and
the means (email, call, etc) that was used. If necessary, please obtain these details from
Lazard.
RESPONSE:
Original Reserve Price
As was outlined in the previous responses to the Committee on 2 December 2016 and on 22
December 2016, the original reserve price of Stg£1.3 billion was agreed by the NAMA Board
at their Board meeting of 8 January 2014. This was verbally communicated by the Project
Eagle loan sale advisor Lazard to all parties who signed the Non-Disclosure Agreement (NDA)
and accessed the Virtual Data Room during February 2014.
Virtual Data Room Entrants
•
•
•
•
•
•
Oaktree
PIMCO
Cerberus
Lone Star
Goldman Sachs
Fortress
2|Page
Revised Reserve Price
In relation to the revised reserve price, NAMA contacted Lazard on 20 March 2014 and
requested that they communicate this to the two potential bidders (Fortress and Cerberus)
which remained in the sales process at that stage. Lazard confirmed on 21 March 2014 that
this had happened. Copies of the emails between NAMA and Lazard which were previously
supplied to the Committee are included in Appendix 1.
NAMA does not have access to Lazard’s correspondence with the two potential bidders
remaining in the process on 20 March 2014 but has no reason to doubt that Lazard
communicated the revised reserve price as requested by NAMA. Both bidders were fully
aware of the revised reserve price.
Date
Time
From
To
20/03/2014
15:55
Cian Kealy (NAMA)
Patrick Long (Lazard)
21/03/2014
10:19
Patrick Long (Lazard)
Cian Kealy (NAMA)
2. Please detail the tax compliance assurances/documentation provided by Lazard on
being contracted for services.
RESPONSE:
Lazard was appointed as the loan sale advisor for the Project Eagle loan sale by virtue of the
fact that it was one of the firms on NAMA’s Loan Sale Advisory Services panel. The firms
which comprised the Panel were appointed following a tender process which began in
September 2011 and which was finalised on 3 January 2012.
The original Invitation to Tender document that was issued contained provisions requiring
any successful tenderer to produce both a current Tax Clearance Certificate and confirmation
that the Tenderer would comply with Section 45 of the NAMA Act, which relates to
3|Page
compliance with professional services and audit. These provisions had to be met before a firm
could be included on the panel.
In addition, internal NAMA payment controls prohibit the processing of invoices without the
relevant company supplying a valid tax clearance certificate which was provided to NAMA.
3. Please detail the rationale for notifying the Minister of Finance on the withdrawal
of PIMCO.
RESPONSE:
The NAMA Chairman contacted the Minister for Finance on 13 March 2014 to inform him that
NAMA had been advised by PIMCO of a proposed success fee arrangement involving Mr Frank
Cushnahan and informing him of NAMA’s response to this disclosure. The Chairman is in
regular contact with the Minister and keeps him informed of all major developments
regarding NAMA.
As was outlined by Minister Noonan during his appearance before the Committee on 6
October 2016, “the Chairman was not, in any respect, requesting permission to proceed with the
sale, nor was he required to. He was notifying me of issues that had arisen and the Board's
considered decision to proceed. I appreciated the courtesy of being informed by the Chairman, as
this was a potentially sensitive issue.”
4|Page
INFORMATION SOUGHT BY THE PUBLIC ACCOUNTS COMMITTEE
(as sought in follow-up email of 11 January 2017)
1. Can NAMA confirm the dates in which they reported matters to the Gardai in relation
to Project Eagle and on what basis? Similarly regarding any reporting to SIPO.
RESPONSE:
NAMA made two reports to the Standards in Public Office (SIPO) on 2 March 2016 and 12
September 2016, and one to the Garda Bureau of Fraud Investigation, on 9 September 2016,
in relation to potential breaches by a former member of NAMA’s Northern Ireland Advisory
Committee of Part IV of the Ethics Acts and possible contraventions of other legislation while
a member of the NIAC.
NAMA made a complaint to SIPO on 2 March 2016 concerning the individual and possible
contraventions of Section 17 of the Ethics in Public Office Act 1995. The complaint related to
evidence of shareholdings in companies associated with a NAMA debtor, which was given to
the Northern Ireland Committee for Finance and Personnel on 3 September 2015, and to
evidence of dealings with PIMCO in May 2013, which was given to the Northern Ireland
Committee for Finance and Personnel on 14 October 2015.
NAMA made a further complaint to SIPO on 12 September 2016 concerning the individual and
possible contraventions of Section 17 of the Ethics in Public Office Act 1995 relating to
allegations made on 6 September 2016 which were broadcast by BBC Northern Ireland.
NAMA made a report to An Garda Siochana on 9 September 2016 under Section 19 of the
Criminal Justice Act 2011 concerning possible contraventions of the Prevention of Corruption
Act 1906, the Public Bodies Corrupt Practices Act 1889 and the Prevention of Corruption
(Amendment ) Act 2001. The information provided to An Garda Siochana comprised the
5|Page
recording of a conversation involving the former NIAC member which was broadcast on 6
September 2016 by BBC Northern Ireland.
6|Page
Appendix 1
(Email correspondence between NAMA and Lazard relating to reserve price)
From:
To:
Cc:
Subject:
Date:
Cian Kealy
";
; "project [email protected]"
Ray Mangan; Alan Stewart; Michael Foley; Declan Ballance; "Horrocks, Chris"; "Maltby, James";
"McLoughlin, Paul"; Evin McCarthy; John Collison
Adjustment to floor price
20 March 2014 15:54:48
Max/Phil
In light of recent Eagle RE sale completions, can you please advise the Investors that the revised
floor price is £1.23b.
Thanks
Cian
Cian Kealy
Senior Manager – Asset Recovery
National Asset Management Agency
Treasury Building
Grand Canal Street
Dublin 2
T: +
M: +
E: From:
Cjan Kealy
Alan Stewart "Horrocks Chris"; :i:,e;;;Banance: Evia McCarthy; "Maltby James"; John Col!isoO' t::l.icba.el
fQJev; "Mel ouoblio Pilul"; ohilio
I
project iolac@lazard corn; Ray Mangan
To:
Cc:
Re: Adjustment to floor price
21 March 2014 10:19:06
Subject:
Date:
Attachments:
�--•ii
AJIQQQQt gjf
Cian,
I can confirm this has been communicated by email to the bidders.
Regards,
Max
Max von Hurter
Director
111
50 Stratton Street,
London, W1J 8LL
+44
phone
+44
mobile
+44
fax
From:
Gian Kealy<
To:
Philip Chapman/CFD/Lazard@LAZARD LONDON, Max von Hurter/CFD/Lazard@LAZARD LONDON, Project lolar
Cc:
Ra Man an
"Michael Foley"
Declan
..... Alan Stewart
Ballance
"'Maltb , James·
Evin McCarthy
1•••••••
Date:
20/03/2014 15:55
Subject:
Adjustment to floor price
Max/Phil
In light of recent Eagle RE sale completions, can you please advise the Investors that the revised floor price is
£1.23b.
Thanks
Cian
Cian Kealy
Senior Manager - Asset Recovery
National Asset Management Agency
Treasury Building
Grand Canal Street
Dublin 2
T: +
M: +
E:
*************************************************************
This message, including any attachments, is intended for the addressee only.
It may be confidential or legally privileged. If you have received this message in
error, you should not disclose, copy or use any part of it - please delete it from
your computer and contact [email protected]
*************************************************************
The information in this e-mail and any attachments is confidential and may be legally privileged. It is
intended solely for the addressee or addressees. If you are not an intended recipient, please delete
the message and any attachments and notify the sender of misdelivery: any use or disclosure of the
contents of either is unauthorised and may be unlawful. All liability for viruses is excluded to the fullest
extent permitted by law. Any views expressed in this message are those of the individual sender,
except where the sender states them, with requisite authority, to be those of a specific LAZARD
company or partnership
Lazard & Co., Limited, 50 Stratton Street, London W1J 8LL. Registration Number: 162175 Place of
Registration: England
Lazard & Co., Limited is authorised and regulated by the Financial Conduct Authority